It’s not a good day if your work with Windows Phone or for Microsoft’s mobile division. The company cut 7,600 jobs tied to the devices and wrote off $7.6 billion of the division’s assets.

Situation leaves Microsoft in an unenviable bind: on one hand, analysts point out that the company can’t and won’t keep on trying to break into a market where they’re a distant third to Apple and Google, at best. On the other, mobile phones are too important a market segment for the company to abandon.

With its acquisition of Nokia, Microsoft is expected to pare down the phone selection it offers. It is expected to revamp the Lumia line of Windows Phones and release a flagship device — which the brand hasn’t had since Microsoft bought the Finnish company. In addition, while Microsoft’s Office products were only available on Windows’ mobile devices, the company has since ported them to iOS and Android.